It's great to find ways to cut back on everyday expenses. The savings can add up. But what you do with the money you save is important. The whole point of cutting back is to use that money for something better. As author Grant Cardone puts it, "save to invest, don't save to save."
Photo by luxstorm.
In an Entrepreneur article on how he became a millionaire by 30 , Cardone credits his deliberate saving:
The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.
It's a useful reminder if you're trying to build wealth. Actually saving your money in a hard-to-access account ensures it has time to grow. If you're in debt, this advice still makes sense: save with a purpose. In this case, your "investment" is getting out of that debt and not throwing your money on interest.
The bottom line: saving money is great, but making the most of your savings is even better. Check out more of Cardone's advice at the link below.
How to Become a Millionaire by Age 30 [Entrepreneur]